–June CIPS Construction Index 58.4 Vs 58.5 In May
LONDON (MNI) – The UK construction industry continued to expand
at a strong pace in June, but industry representatives are more bearish
about future prospects and reluctant to take on more staff, the latest
CIPS/Markit survey found.
The June CIPS construction index came in at 58.4, just below the
58.5 recorded in May and well above the 50 level which marks the
boundary between contraction and expansion.
The pace of increase in new orders slowed from May with respondents
reluctant to increase staffing numbers.
“With new orders expanding at a weaker pace, there is a possibility
of reduced growth in activity going forward,” Sarah Ledger, Economist at
Markit, said.
“Whilst sentiment overall remained positive, a number of
construction companies were more bearish over future activity, with some
concern expressed over the implications of public spending cuts and the
VAT rise scheduled for 2011. This was highlighted by ongoing reluctance
to add to workforces, despite the sustained expansion in activity,” she
added.
The June construction sector PMI release follows the publication of
the June manufacturing sector PMI, which showed a fall in the index to
57.5 from 58.0 in May.
–London newsroom: +44 207 862 7491; email: drobinson@marketnews.com
[TOPICS: MABDS$,M$B$$$,MT$$$$]
